BorgWarner (NYSE:BWA) Upgraded to Buy by StockNews.com

StockNews.com upgraded shares of BorgWarner (NYSE:BWA) from a hold rating to a buy rating in a research report report published on Thursday morning.

Several other research analysts also recently commented on BWA. TD Cowen lifted their target price on shares of BorgWarner from $36.00 to $40.00 and gave the stock a buy rating in a report on Friday, May 3rd. Barclays boosted their price objective on BorgWarner from $44.00 to $45.00 and gave the stock an overweight rating in a research report on Monday, May 6th. Oppenheimer raised their target price on BorgWarner from $39.00 to $40.00 and gave the company an outperform rating in a report on Friday, May 3rd. Wells Fargo & Company cut their price target on BorgWarner from $45.00 to $44.00 and set an overweight rating for the company in a report on Tuesday, June 25th. Finally, Citigroup raised their price objective on shares of BorgWarner from $33.00 to $41.00 and gave the stock a neutral rating in a research note on Monday, May 6th. Seven research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of Moderate Buy and an average target price of $43.71.

BorgWarner Stock Performance

BWA opened at $31.89 on Thursday. The stock has a 50-day moving average of $34.70 and a 200-day moving average of $33.77. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.20 and a current ratio of 1.54. BorgWarner has a 52-week low of $29.51 and a 52-week high of $47.05. The company has a market cap of $7.27 billion, a PE ratio of 12.08, a price-to-earnings-growth ratio of 0.77 and a beta of 1.22.

BorgWarner (NYSE:BWA) last announced its earnings results on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.87 by $0.16. BorgWarner had a return on equity of 15.33% and a net margin of 4.02%. The firm had revenue of $3.60 billion during the quarter, compared to analysts’ expectations of $3.51 billion. During the same quarter in the prior year, the business earned $1.09 earnings per share. The company’s revenue was up 6.3% on a year-over-year basis. As a group, equities research analysts forecast that BorgWarner will post 4.05 earnings per share for the current fiscal year.

BorgWarner Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 17th. Stockholders of record on Monday, June 3rd were paid a $0.11 dividend. The ex-dividend date was Monday, June 3rd. This represents a $0.44 annualized dividend and a dividend yield of 1.38%. BorgWarner’s dividend payout ratio is currently 16.67%.

BorgWarner declared that its board has approved a stock buyback program on Thursday, May 2nd that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the auto parts company to reacquire up to 6% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Institutional Trading of BorgWarner

Several institutional investors have recently bought and sold shares of BWA. Norges Bank bought a new position in shares of BorgWarner during the fourth quarter valued at $75,489,000. Victory Capital Management Inc. lifted its holdings in BorgWarner by 10.9% during the 4th quarter. Victory Capital Management Inc. now owns 9,668,438 shares of the auto parts company’s stock valued at $346,614,000 after purchasing an additional 948,659 shares during the last quarter. Ninety One UK Ltd boosted its position in BorgWarner by 85.1% in the fourth quarter. Ninety One UK Ltd now owns 1,656,221 shares of the auto parts company’s stock valued at $59,376,000 after buying an additional 761,250 shares in the last quarter. Hotchkis & Wiley Capital Management LLC boosted its position in BorgWarner by 43.5% in the fourth quarter. Hotchkis & Wiley Capital Management LLC now owns 2,213,630 shares of the auto parts company’s stock valued at $79,359,000 after buying an additional 670,720 shares in the last quarter. Finally, American Century Companies Inc. grew its stake in BorgWarner by 18.3% during the third quarter. American Century Companies Inc. now owns 4,189,541 shares of the auto parts company’s stock worth $169,132,000 after buying an additional 648,633 shares during the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

About BorgWarner

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.